Annual job growth doubled in past decade: Economic census

UPA govt's record here twice as good as that of earlier NDA's; women's participation rose to a fourth of workforce

Job growth in establishments during the United Progressive Alliance (UPA) government’s tenure was almost double the rise during the previous National Democratic Alliance (NDA) regime, provisional results of the Sixth Economic Census, issued on Wednesday, show.

According to the report, issued by the statistics and programme implementation ministry, the average annual job growth during 2005-14 was 4.3 per cent, compared to a 2.5 per cent annual rise in jobs during 1998-2005.

The Atal Behari Vajpayee-led NDA government was in power during 1998-2004, after which the Manmohan Singh-led UPA government took charge for a decade. During 2005-14, employment grew 34.3 per cent. In 2013-14, the establishments registered 127.7 million (mn)jobs, compared to 95.05 mn in 2005. (HOW THE NUMBERS FARED)

The economic census provides information on operational and economic variables, activity-wise, of the establishments across India. The latest round was conducted in January 2013-April 2014. The report noted the number of establishments in the country in 2013-14 were 58.5 mn. In 2005, the number of enterprises was 42.1 mn. The census defines an establishment as units engaged in production and/or distribution of goods and services, not for the purpose of sole consumption. An enterprise is termed as a multi-plant firm which can have multiple establishments across the country.

Close to 60 per cent of these establishments were based in rural parts. Around 40 per cent of the total were functioning inside households and 41.1 per cent had fixed structures outside a household. The census also reflected the increase in women's participation. The proportion of women workers in the total workforce in 2013-14 was 25.6 per cent, compared to 19.3 per cent in 2005. "This is a very good sign, as the employment has shown a four per cent annual growth during this period,” said Pronab Sen, chairman of the National Statistical Commission.

He, however, cautioned that one had to be careful in interpreting the figures, as “the data doesn’t capture if a person is under-employed”.

Sen said during the decade ending 2014, there were a lot of start-ups that entered the market, leading to an increase in the number of establishments. “As people developed skills, probably they started their own jobs,” he said. The average employment per establishment, however, declined in 2013-14 compared to 2005. In 2005, 2.3 people were employed in an establishment, which came down to 2.2 in 2013-14.

The Northeast states saw a big rise in the number of establishments. Manipur (109.4 per cent), Sikkim (102.9 per cent) and Assam (100.2 per cent) had the highest job rise. The economic census did not include establishments involved in crop production, plantation, public administration, defence and compulsory social security services.